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To: Teddy who wrote (3346)9/28/1998 11:55:00 AM
From: SDR-SI  Read Replies (1) | Respond to of 11568
 
To all:

Here is the announcement that was indicated yesterday would be forthcoming:

> > >MCI WorldCom Unveils New 'On-Net' Communications Services for Businesses

PR Newswire, Monday, September 28, 1998 at 11:33

First and Only Communications Service Platform to Eliminate Boundaries Between
Local, Long Distance and International Voice, Data and Internet Services

ST. LOUIS, Sept. 28 /PRNewswire/ -- Just two weeks after completing its
merger, MCI WorldCom today announced an industry changing, new communications
service. On-Net from MCI WorldCom allows business customers to combine voice
and data traffic from local U.S. and international locations onto one
seamless, end-to-end network.
MCI WorldCom now owns and operates its own network in local cities across
the U.S. and globally. This eliminates the hassle and cost of interconnecting
with multiple phone companies for local, long distance and international
communications services. MCI WorldCom On-Net customers are also able to
utilize a single access method for all of their voice, data and Internet
services empowering business with unprecedented flexibility, network
accessibility and significant savings. This new first-of-its-kind service is
available today in all MCI WorldCom facilities-based markets world-wide. A
majority of American business occurs in cities covered by MCI WorldCom's local
services. On-Net offers business customers strong incentives for combining
all of their telecommunication services with MCI WorldCom and for utilizing
the company's local service facilities.
"Every business in America should get On-Net," said Tim Price, president
and CEO of MCI WorldCom Communications. "Only MCI WorldCom has wholly-owned
network facilities in 81 major markets and nearly 50 international locations.
That's why only MCI WorldCom can offer businesses unparalleled network speed,
consistent global customer service and integrated product offerings. On-Net
breaks down the barriers between local, long-distance and global services that
were erected by monopolies. By bringing competition to these markets, we're
bringing a competitive advantage to our customers, increased bandwidth,
simplicity and savings."

MCI WorldCom On-Net Rewrites the Rules For Communications
When customers send traffic, either voice or data, between two or more
locations that are On-Net, traditional boundaries become irrelevant. Customers
receive one flat rate for domestic calls and country-specific flat rates for
international calls that leverage the local-to-global-to-local network.
This unique concept extends beyond an individual company to other On-Net
customers allowing their customers, suppliers and other companies they do
business with to share in the On-Net advantage.
On-Net also provides significant improvements in other areas since it
utilizes one network and one support structure for all communications
services, avoiding hand-offs between local, long distance and global carriers.
On-Net customers will enjoy unique benefits from the service including:
INCREASED CAPACITY. MCI WorldCom's network has capacity so vast it can
carry all of the data traffic of all other carriers combined.
BETTER RELIABILITY. By offering end-to-end services over its own SONET
facilities, in many locations, On-Net reduces or even eliminates the hand-offs
from one network and carrier to another, increasing reliability.
ENHANCED FLEXIBILITY. MCI WorldCom On-Net provides an array of services
including domestic and global voice, data and Internet with solutions serving
customers from small businesses to the largest multinational corporation.
ONE POINT OF CONTACT. Businesses of any size have one sales and service
team for all their voice and data services, wherever they do business.
ONE CONTRACT, WITH CONSOLIDATED VOLUME DISCOUNTS. By aggregating volume
discounts across all services -- local, long distance, global, voice, data,
Internet, etc, -- customers save money and time.
MCI WorldCom's Local-to-Global-to-Local Network Empowers Ground-Breaking
Communication Service
The key to On-Net is MCI WorldCom's "local-to-global-to-local" network.
MCI WorldCom is the only company with broad network coverage in local U.S.
markets along with a growing network presence in Europe, Asia, South and
Central America. Through the combination of MCI, Brooks Fiber and MFS, MCI
WorldCom has the largest national "local footprint" in the U.S.

Customers Are Already Using On-Net
Customers such as JD Edwards, which develops enterprise software, and
Great West Life & Annuity, an employee benefits and financial services
company, are already taking advantage of these new services.
J.D. Edwards has 49 offices worldwide, 252 global business partners and
approximately 6,590 customer sites in 104 countries. "MCI WorldCom On-Net
gives us a single solution to manage all our locations across our network, and
network management and reporting tools that simplify our monitoring and
invoicing processes," said Mark Endry, J.D. Edwards vice president and CIO.
"This simplified approach eliminates the need to deal with several
communications providers."
"MCI WorldCom On-Net revolutionizes how customers use communications,"
said Price. "This innovative new service not only benefits customers, but
extends and maximizes those savings when trading partners and suppliers also
use MCI WorldCom On-Net services."

Complete Portfolio of Integrated Products and Services
Customers can take advantage of a number of services, all integrated onto
a single invoice with common discounts across all products, standardized
service level and contract agreements unparalleled in the industry. MCI
WorldCom On-Net offers the widest breadth of communications services on one
network including:
Voice and Integrated Services -- MCI WorldCom has solved the last mile
connection for providing local service, and created a new type of traffic --
Local Network Calling. This provides pricing consistency that only a national
provider of local services can deliver. Local services are full featured and
consistent from market to market. Other integrated services include Enhanced
Toll Free Services, Calling Card and Paging.
Virtual Data and Internet Services -- Through its advanced, end-to-end
network, MCI WorldCom has created the concept of a "super port," where
customers in many locations can connect their businesses to the world -- or
next door. This seamlessness means no network-to-network interfaces (NNIs)
that sometimes create bottlenecks, traffic delays and reduced efficiencies.
Offering two premier data services, Frame Relay and Asynchronous Transfer Mode
(ATM) services, MCI WorldCom provides local availability, seamless global
access, advanced enterprise network services, and comprehensive service level
agreements / management. On the Internet, MCI WorldCom specializes in
interoperable communications solutions that merge traditional data legacy
systems with carrier-grade Internet services, including dedicated access with
flexible tiered billing, web-hosting, managed security services, intranets and
e-commerce services.
Global Voice and Data -- MCI WorldCom is one of the world's premier
carriers of international traffic with an expanding network and facilities in
Europe, Latin America and Asia-Pacific. MCI WorldCom extends its domestic
product set globally offering customers Global Voice, Global ATM Service
(Outbound Voice and ATM slated for January 1999 commercial availability),
Global Frame Relay Service, and Managed International Private Line. MCI
WorldCom will leverage its in-country local facilities to provide its local-
to-global-to-local On-Net promise.
MCI WorldCom Interact -- A full suite of business applications, MCI
WorldCom Interact is available through a secure Web site that provides
customers with a single point of electronic access for active network
management, customer care, analysis and service ordering. It also provides an
innovative customer service tool for real-time electronic invoices, payment
and reports for voice and data networks..
Conferencing -- MCI WorldCom Conferencing combines unrivaled local-to-
global capabilities and industry-leading conferencing management tools for
audio, video and NET Conferencing to provide customers with the electronic
meeting solutions that make a difference in the marketplace.

Using the World Wide Web, Customers Control Their Service
MCI WorldCom On-Net is the first full-service, Web-enabled product that
features invoicing, payment, customer support and call detail all online.
Through MCI WorldCom Interact, e-billing presents an invoice and allows for
online remit. MCI WorldCom Interact also provides real-time monitoring and
powerful traffic and usage analysis tools.

Advertising to Launch Today
A national advertising campaign to promote this service will launch this
evening. The television campaign features actor Sam Neill in his first
advertising effort. Neill is a veteran of more than 50 films, including
Academy Award winning "The Piano," "The Hunt for Red October," block-buster
"Jurassic Park" and most recently, "The Horse Whisperer." In addition, MCI
WorldCom will launch a print and Internet advertising effort promoting "On-
Net". The advertising was developed by Messner, Vetere, Berger, McNamee,
Schmetterer EURO RSCG, New York.

About the Company
MCI WorldCom is a global telecommunications company with revenue of more
than $30 billion and established operations in over 65 countries encompassing
the Americas, Europe and the Asia-Pacific regions. MCI WorldCom is a premier
provider of facilities-based and fully integrated local, long distance,
international and Internet services. MCI WorldCom's global networks, including
its state-of-the-art pan-European network and transoceanic cable systems,
provide end-to-end high-capacity connectivity to more than 35,000 buildings
worldwide. MCI WorldCom is traded on Nasdaq under WCOM. For more information
on MCI WorldCom, visit the World Wide Web at mciworldcom.com or
wcom.com.

SOURCE MCI WorldCom
-0- 09/28/98
/CONTACT: Marianne Steiner or Paul Adams of MCI WorldCom, 1-800-644-NEWS/< < <

Steve




To: Teddy who wrote (3346)9/28/1998 6:11:00 PM
From: Anthony Wong  Respond to of 11568
 
A Bloomberg article with some analyst comments about the announcement:

MCI WorldCom Offers Lower Rates for Calls Between Businesses

Bloomberg News
September 28, 1998, 1:41 p.m. ET

MCI WorldCom Offers Lower Rates for Calls Between Businesses

Jackson, Mississippi, Sept. 28 (Bloomberg) -- MCI WorldCom
said it's offering a new service with discounts of as much as 35
percent for calls between business customers, as it passes on
some savings stemming from WorldCom's $47 billion purchase of MCI
two weeks ago.

The service, called On-Net, is open to customers that use
MCI WorldCom for local, long-distance and international calls.
The company is the first to offer end-to-end connections on its
own lines, bypassing other providers and their fees.

With the new service, MCI WorldCom is moving quickly to get
companies to use it exclusively. Customers' bills will
distinguish calls that are made entirely on the MCI WorldCom
network from calls that go to competitors' customers.

''MCI WorldCom's already got the kind of network that other
companies are trying to build,'' said Jeffrey Kagan, president of
Kagan Telecom Associates in Atlanta.

MCI WorldCom shares rose 1/4 to 50 3/8 in midafternoon
trading.

MCI WorldCom said it will charge flat rates for in- and out-
of-state calls that don't leave its network, as well as country-
specific rates for international calls. The company said the
savings will range from 15 percent to 35 percent.

''The savings are going to be a big driver to get customers
to keep traffic on the network,'' Kagan said.

The company has local networks in 81 U.S. cities and
international facilities in about 50 countries. The services are
being unveiled today at a meeting in St. Louis of its entire
sales force.

--Andrew Brooks in the Princeton newsroom (609) 279-4066/rec/bab



To: Teddy who wrote (3346)9/28/1998 6:23:00 PM
From: Anthony Wong  Read Replies (1) | Respond to of 11568
 
09/28 16:00 RESEARCH ALERT - Lehman positive on MCI WorldCom

NEW YORK, Sept 28 (Reuters) - Lehman Brothers said analyst Blake Bath
reiterated a buy rating on MCI WorldCom Inc. <WCOM.O>.

-- said recent conversations with senior management suggests the company is
confident about meeting 1999 consensus earnings expectations.

-- MCI WorldCom is expected to earn $1.99 a share in 1999 and $0.89 a
share in 1998, compared to $0.22 a share in 1997, according to First Call.

-- said MCI WorldCom has been "aligned to optimally capture cost and
revenue synergies."

-- said cost synergies should become apparent in the next two quarters, with an
annualized cost savings rate hitting $500 million by December 1998 and $1.6
billion in the first quarter of 1999.

-- said MCI WorldCom's valuations should improve in the next two to three
quarters as the company sees these merger synergies and demonstrates
sustainable growth.

-- earlier on Monday, MCI WorldComo introduced a new service called
On-Net, which cuts costs for business customers that send voice or data traffic
using only the MCI WorldCom network rather than several phone networks.

-- Lehman said MCI WorldCom's new On-Net product will leverage the
company's service capabilities, domestically and globally. Said On-Net gross
margins are expected to be 70 percent to 80 percent, which is about 50
percent higher than WorldCom's average margins.

-- Shares of MCI WorldCom lost 5/16 to 49-13/16.